Insights

Issue No.144

09 October 2017

This report is designed to give you a snapshot about the MENA region tackling multiple issues:

55.23 USD 1,284 USD

	/USD	/EUR
EGP	17.61	20.63
AED	3.67	4.31
QAR	3.64	4.27
SAR	3.75	4.39
BHD	0.38	0.44
OMR	0.39	0.45

Economic Outlook

Egypt aims to raise its revenues from taxes imposed on tobacco by 7 BN EGP (397.50 MM USD) in the 2017/2018 fiscal year that began in July. Egypt has been increasing taxes and cutting subsidies to narrow its budget deficit as part of economic reforms tied to a 12 BN USD International Monetary Fund (IMF) program aimed at boosting the economy.
Russia and Egypt have signed an MoU where the former will build a Russian industrial zone in Suez Canal area before the end of this year. The industrial zone will cover an area of 5 million square meters in the east of Port Said, with total investments worth above 7 BN USD.
Egypt non-oil private sector business activity shrank at its sharpest pace in three months in September amid contractions in new orders and outputs, but companies were optimistic that growth will pick up in the coming year.
Means of boosting relations between the UAE and Jordan in the fields of transport have been discussed between Matar Saif Al-Shamsi, UAE Ambassador to Jordan, and Jamil Ali Mujahed, Jordanian Minister of Transport.
According to a new amendment announced by the Royal Oman Police, an expatriate employee minimum salary for family joining visa is lowered to 300 OMR compared to the previous salary level of 600 OMR.
The decision to allow Saudi women to drive can save the Kingdom 20 BN SAR (5.3 BN USD) per year resulting from the saving of the huge salaries paid by Saudi families to expatriate drivers annually. Besides, there are recruitment, iqama and work permit fees that must be paid by the employer for a foreign worker.
The Saudi ministry of transport has completed several projects worth more than 4 BN SAR (1.07 BN USD) across different parts of the kingdom. The key projects finalized in 2017 include the construction of Salboukh Bridge that connects Northern and Western districts of Riyadh, as well as the final phase of the road that leads to the Omani borders and facilitates trade activity between both countries.
Abu Dhabi sold its first ever 30-year sovereign bond as part of a 10 BN USD triple-tranche debt issue that drew heavy demand. The sale followed a 12.5 BN USD bond issue by Saudi Arabia - the largest emerging market bond sale in 2017 - and was the latest jumbo sovereign offering from Gulf states tapping the debt markets in a period of low oil prices.

_______________________________________________________________________________________________________________________________

Political Events

Police across Russia detained more than 100 opposition activists for taking part in a wave of protests in support of jailed opposition leader Alexei Navalny ahead of a presidential election in March.
United States and Turkey have suspended all non-immigrant visa services for travel between the two countries, after last week arrest of a US consulate employee in Istanbul. In addition, Turkey lira has plunged against USD due to the rising tensions between the U.S and its NATO ally.
Syrian rebels backed by Turkey are engaged in a "serious operation" in Idlib province according to Erdogan, as part of a joint mission with Russia and Iran to monitor a ceasefire agreement and pacify a rebel stronghold in northwest Syria.
Two Saudi royal guards were killed and three were injured by an attacker who opened fire at a checkpoint at the Al-Salam Palace in the coastal city of Jeddah.
While learning how to drive, a car accident lead to the death of a Saudi woman in the Red Sea city of Jeddah in the company of her husband who is injured. The accident took place when as the car smashed into a concrete block in Al Manar neighborhood.
President Donald Trump is planning to abandon the Iran nuclear deal shortly. If he fails to certify the accord, Congress will decide whether to re-impose economic sanctions on Iran. Trump has until 15^th of October to decide.

___ ________________________________________________________________________________________________________________________

Stock Market

.QSI banking sector has declined led by Qatar National Bank (QNB) and Masraf Al Rayan. In addition, telecommunication sector has declined led by Vodafone Qatar and real estate sector led by Ezdan.
.ADI telecommunication sector has increased led by Etisalat and real estate sector led by Eshraq Properties.
.DFMGI banking sector has increased led by Dubai Islamic Bank (DIB) and real estate sector led by DAMAC Properties.

Note: Weekly values are calculated on Thursday of each week.

___ __________________________________________________________________________________________________________________

Major Companies Transactions

Etisalat Misr has signed a four-year contract with Ericsson to transform its core network and business support systems in Egypt to offer more flexible and personalized services to its subscribers. Ericsson experience and expertise will help Etisalat Misr capture the growth in 4G as well as pave the way for 5G and Internet of Things.
Royal Dutch Shell has cancelled a 900 MM USD deal to sell its gas field stakes in Thailand to Kuwait Foreign Petroleum Exploration Company (KUFPEC). It is worthy to mention that Shell and KUFPEC have announced the deal in January 2017 which was expected to be completed during Q1-2017.
Oman-based poultry and processed food producer A'Saffa Foods has secured long-term financing for its 45 MM OMR (116.9 MM USD) expansion project in Dhofar that will include 10 farms with 90 poultry houses, a hatchery, feed mill, processing plant and other utilities. The 31.5 MM OMR financing agreement with Bank Muscat Islamic Banking window Meethaq will help fund its expansion plan, which will double its production capacity to 40 million birds per annum.
Australia expects to increase exports of liquefied natural gas (LNG) by 16% from mid-2018 as 180 BN USD in new projects, getting close to Qatar's level, the world's top supplier. Australia LNG exports are forecasted to climb to 74 million tons in the year to end-June 2019, compared to 63.8 million tons forecast for this year and 52 million tons last year, compared to total exports of 77.6 million tons by Qatar last year
Gulf Air, the Kingdom of Bahrain national carrier, and Turkish Airlines, Turkey's national air carrier, signed a codeshare agreement that will be effective starting 1^st November 2017. The agreement will expand the travel opportunities for the passengers of both airlines with jointly operated double daily flights between Bahrain and Istanbul.

_______________________________________________________________________________________________________________________________

Sports and Culture

Egypt became the second African nation after Nigeria to qualify for the 2018 FIFA World Cup following a last-gasp 2-1 win against Congo-Brazzaville. Mohamed Salah was the hero as Egypt reached the finals for the first time in 27 years, in the process ending Ghana's feint hopes of qualification.
The American economist Richard H. Thaler was awarded the 2017 Nobel Prize in Economics for his contributions to behavioral economics. According to the Royal Swedish Academy of Sciences, Thaler "has incorporated psychologically realistic assumptions into analyses of economic decision-making".
Saudi Restaurants and cafes will now have to display calories on the menus of meals provided by them. The initiative will be carried out in two stages. In the first stage to be carried out this year, listing calories on menu cards will be optional. But in the second stage, to be implemented in the last quarter of 2018, it will be mandatory to inform diners about calories of the meals they order, according to Saudi Food and Drug Authority (SFDA).
Female students in Saudi Arabia have been allowed to enter university and colleges campuses with their mobiles in a landmark decision by the education minister.
An Emirati woman has donated 20 MM AED (5.45 MM USD) to the Awqaf and Minors Affairs Foundation (AMAF), to establish its first education endowment. The annual revenues from the endowment will finance the university education of minors and orphans under AMAF's care.

____________________________________________________________________________________________________________________

Join Our Mailing List !

Cairo Office:

Z epter Office Building S5-6, Area 5, District 1, 5th Settlement, New Cairo, Egypt. P.O. Box: 1147

Dubai Office:

Office No. N 415, North Tower, Emirates Financial Towers, DIFC, P.O Box 506726, Dubai, UAE.

Tel: +97143518187

For more reports, visit our website